Description: A family owned manufacturer of semiconductor equipment, this company had been the market leader in its field for a number of years. As competition increased and the market matured, the company experienced losses, a loss of its bank line of credit and significant delays in the development cycle of follow on products, leading to a significant reduction in market share.
Challenge: Avoid Bankruptcy; generate new revenue; arrange for bank financing; get the development cycle on track.
Actions: Reduce costs by headcount reductions and reductions in carried inventory; arrange for new line of credit for both domestic and international sales; restructure sales organization including identifying and recruiting new channel partners; revamp the product development process with extensive controls put a system of financial controls in place including rigid cash management.
Results: After experience three consecutive years of losses, the company was profitable in 2008; several new products were introduced and the owners have a playbook for management of the company.
